Taxes Consolidation Act 1997 section 807A

Liability of non-transferors

Section 807A imposes an income tax charge on individuals who receive benefits from transferred assets but who are not themselves the transferors caught by section 806.

• Where a transfer of assets results in income becoming payable to a non-resident or non-domiciled person, and a resident individual who is not liable under section 806 receives a benefit from those assets, the benefit is treated as the individual's taxable income.
• The benefit is matched against "relevant income" — income arising to the non-resident or non-domiciled person that can be used directly or indirectly to provide the benefit — and is charged under Case IV of Schedule D.
• Anti-double-taxation rules prevent an overlap between the income tax charge under this section and a capital gains tax charge under sections 579A or 579F(2) on capital payments from offshore trusts.
• The charge does not apply where Revenue are satisfied the transfer was for bona fide commercial reasons and not for tax avoidance, or where the non-resident person is resident in the EEA and the income arises from genuine economic activity there.